Full report - SGI Canada

RESPonsibiliTY for financial statements
The new strategic plan also recognizes the important role technology will play. An eServices strategy has
been established with an objective to gain efficiencies and improve productivity in both the Corporation’s
and its brokers’ business processes, adding value to the broker partnership and improving overall
competitiveness. In addition, the Corporation has embarked on a business intelligence project that
leverages data to assist with obtaining more profitable business, more accurately pricing risks and better
managing and controlling claim costs. Phased-in implementation of aspects of this project will begin in
late 2011.
Heading into 2011, SGI CANADA has the expertise of its employees and a clear strategic direction to guide
the Corporation to continued success in the competitive Canadian insurance marketplace.
The consolidated financial statements are the responsibility of Management and have been prepared in
conformity with accounting principles generally accepted in Canada. In the opinion of Management, the
consolidated financial statements fairly reflect the financial position, results of operations and cash flows
of Saskatchewan Government Insurance (the Corporation) within reasonable limits of materiality.
Preparation of financial information is an integral part of Management’s broader responsibilities for the
ongoing operations of the Corporation. Management maintains an extensive system of internal accounting
controls to ensure that transactions are accurately recorded on a timely basis, are properly approved and
result in reliable financial statements. In this regard, an annual statement of management responsibility
is provided on the following page. In addition, the adequacy and operation of the control systems are
monitored on an ongoing basis by an internal audit department.
An actuary has been appointed by the Corporation to carry out a valuation of the policy liabilities in
accordance with accepted actuarial practice and common Canadian insurance regulatory requirements.
The policy liabilities consist of a provision for unpaid claim and adjustment expenses on the earned
portion of policies and of future obligations on the unearned portion of policies. In performing this
valuation, the actuary makes assumptions as to future rates of claim frequency and severity, inflation,
reinsurance recoveries, expenses and other contingencies, taking into consideration the circumstances
of the Corporation and the nature of the insurance policies. The actuary also makes use of Management
information provided by the Corporation and the work of the external auditors in verifying the data used in
the valuation.
The consolidated financial statements have been examined and approved by the Board of Directors. An
Audit and Finance Committee, composed of members of the Board of Directors, meets periodically with
financial officers of the Corporation and the external auditors. These external auditors have free access to
this committee, without Management present, to discuss the results of their audit work and their opinion
on the adequacy of internal financial controls and the quality of financial reporting.
As appointed by the Lieutenant Governor in Council and approved by Crown Investments Corporation
of Saskatchewan, KPMG have been appointed external auditors. Their responsibility is to report to the
Members of the Legislative Assembly regarding the fairness of presentation of the Corporation’s financial
position and results of operations as shown in the consolidated financial statements. In carrying out their
audit, the external auditors also make use of the work of the actuary and her report on the policy liabilities.
The Auditors’ Report outlines the scope of their examination and their opinion.
Andrew R. Cartmell
President and Chief Executive Officer
Jeff Stepan
Chief Financial Officer
February 24, 2011
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